Growth at all costs? The case for corporate efficiency
Growth is a hell of a drug. But at some point, businesses gotta come down. Is now one of those points?
In business, growth is a hell of a drug.
21st-century American businesses must grow at all costs.
Grow headcount.
Grow the customer base.
Grow revenues.
If you don't grow, do you even business, bro?
Growth is all that matters.
Scale at all costs.
Sure, focusing only on growth is unsustainable in the long run, but who cares? You won't be around that long. Because you'll turn around and sell your business to another company or private equity group and take your payout and ride off into the sunset. You'll be set for life, and as a bonus, someone might even write a book or a viral LinkedIn post about you and your great success.
But what if you've reached a point at which growth is harder to come by? Maybe even, at least for a period, impossible to come by? Might you be better at focusing on holding on to and improving what you’ve got?
Lack of growth in the overall economy will trickle down to individual businesses, meaning that growth will also be harder for you. As capital is harder to come by, there will be fewer companies to acquire the business that you've grown, grown, GROWN for this moment.
So what do you do when growth is no longer the winning strategy it once was?
This is when companies do the unthinkable, the mundane--they focus on becoming more efficient.
This is the time for improving processes and systems, maybe even weeding out the bad apples of your company and replacing them with more capable performers with a can-do attitude. (Just make sure you give these new team members the tools they need for success, else it’s on you when they sour like their predecessors.)
True efficiency is the unfun part of business. But it's so crucial in times when growth has stalled. This hard work is the path to sustainability, the secret to weathering the storm and gearing up for the next boom cycle. Herein lies your next opportunity.
The future will be owned by those who can polish a turd into a work of art.
Few can. That's why few are willing to try.
But, man, for those who can pull it off...
Goodbye. Adios. Adieu.
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